Indian shares may open higher on Wednesday amid positive global news flow, but volatility is expected due to uncertainty over a U.S.-India trade deal. Sensex and Nifty closed marginally lower on Tuesday, with the rupee falling against the dollar for the fifth consecutive session. Foreign portfolio investors sold shares worth Rs 3,548 crore, while domestic institutional investors bought shares worth Rs 5,239 crore. Asian markets were mixed, with Japan’s Nikkei surging nearly 3 percent on news of a trade deal with the U.S. involving a 15 percent tariff on Japanese imports and a $550 billion investment plan.

Japanese Prime Minister Ishiba and U.S. Treasury Secretary Scott Bessent discussed trade negotiations, with the next round of talks set for next week in Stockholm. Bessent also commented on the possibility of Fed Chair Jerome Powell stepping down and criticized the recent rate cuts. President Trump called Powell a “numbskull” and predicted his departure in eight months. The U.S. dollar weakened against the yen in Asian trade, while gold fell from a five-week high and oil prices rose after three consecutive sessions of decline.

U.S. stocks closed mixed on Tuesday, reacting to earnings reports and trade developments. The Nasdaq dipped 0.4 percent, the S&P 500 edged up, and the Dow added 0.4 percent. European stocks declined for a third consecutive session, with uncertainty over U.S.-EU trade talks and disappointing earnings updates affecting market sentiment. The STOXX 600, German DAX, and France’s CAC 40 all closed lower, while the U.K.’s FTSE 100 inched up slightly.

Read more at Nasdaq: Sensex, Nifty Set To Open On Firm Note